Year: 2022 | Month: September | Volume 67 | Issue 4
Tax Incentives in the System of State Financial Support of Economic Entities
Larysa Sidelnykova
Nina Ovsiuk
Oksana Savastieieva
Svitlana Kozak
Nataliia Lishchuk4
Andrii Zinchenko
DOI:10.46852/0424-2513.4.2022.31
Abstract:
In crisis conditions of economic development, it is the state’s assistance to economic entities that can improve the economic situation both in the regions and in the country as a whole. The taxation system of business entities should simultaneously stimulate business development and further fill the state and local budgets at the expense of tax revenues. Tax incentives are one of the leading elements of tax policy, which in turn pursue social and economic goals. The research aims to analyze the impact of tax incentives on business entities’ functioning and develop options that improve their efficiency and competitiveness. A detailed and comprehensive analysis of the best foreign practices allowed the authors to propose a mechanism for tax incentives in the system of state financial support for business entities. The authors also provided more detailed recommendations regarding individual instruments of state tax incentives and highlighted the most important practical aspects. The proposed recommendations can contribute to the development of business and the growth of innovative activity of economic entities, which will improve the economic situation in the regions and social progress in general through filling the state and local budgets with tax revenues.
Highlights
- The system of taxation of business entities should be aimed simultaneously at stimulating business development and at further filling the state and local budgets at the expense of tax revenues;
- The most suitable for implementation is the tax regime under which the company is exempt from taxation for a period of three years, provided that at least half of the net profit is reinvested in its own development.
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